Concerned model Y reignites about Tesla cash

Elon Musk's unveiling a new electric vehicle that Tesla did not deliver to customers for another year and a half are concerned about the company's cash position.

Model Y crossover whose CEO debuted on Thursday Thursday in Hawthorne, California, will begin delivering to customers in the fall of next year, later than some analysts anticipated. The company immediately started getting $ 2,500 preorder, bigger than $ 1,000 that it charged at first to reserve Model 3 sedan.

"The more expensive customer deposit for Model Y is likely to reinforce bear concerns about Tesla's cash," Toni Sacconaghi, an analyst at Sanford C. Bernstein, said in a report on Friday. "We expect initial orders to be lower than Model 3."

Tesla's shares fell 5 percent Friday. The stock has dropped by almost 1

7 percent this year.

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In Tesla's studio, the Musk showed a blue prototype of mid-sized Model Y, which is almost 10 percent larger than the best Model 3. In the beginning, the three higher editions of the new car, with a standard version scheduled to arrive in spring 2021 which will be priced at $ 39,000 and equipped with a 230-mile battery.

With Model Y showing today and yet keeping most customers waiting until the second half of next year, Tesla risks undermining momentum for Model 3, which catapulted the automaker up the charts of the sales and helped Musk post back-to-back quarterly earnings. Investors are counted in Model Y to help companies better meet consumers' demands for ditching sedans for roomier crossovers and SUVs.

Musk took the stage Thursday before a crowd of customers and fans, but was uncharacteristically covered. He spent his presentation on the struggles of the manufacturing company.

"He's not the typical charismatic Elon Musk. He's a very low-key," says Michael Harley, executive editor of Kelley Blue Book, who is in the event. "He almost apologized, it's a bit of a reality check. The crowd in the crowd was like a car, but the Musk spent only a fraction of his time talking about it." [19659003] Only one of the new models was driven on stage, where it shared attention to other, older vehicles. In 2016 modeling of Model 3, on the other hand, the Musk showed three cars and released the rising number of customer deposits on one screen while they were in the box.

At the opening of Model Y, Musk said about getting orders or deposits, although the Tesla website allows people to submit fully refundable preorders. As customers of Model 3 placed a $ 1,000 deposit and then have to pay $ 2,500 to configure and order, Model Y buyers will pay only the final amount.

However, costlier advance payments to customers of Model Y "indicate that Tesla remains in an uncertain cash position," Jeffrey Osborne, an analyst at Cowen & Co. equivalent to a seller rating in the shares, wrote in a report. "We remain concerned about the company's liquidity."